RERC Extends Wind Power PPAs to Help DISCOMs Meet RPOs

The Rajasthan Electricity Regulatory Commission (RERC) has approved the extension of power purchase agreements (PPAs) for two wind power generators by five years, aiming to help the state’s power distribution companies bridge gaps in their Renewable Purchase Obligations (RPO).

The extensions apply to Rajasthan Renewable Energy Corporation Ltd (RRECL) and FFR Software Pvt Ltd, whose original 20-year PPAs had expired in 2024 and 2023, respectively. The move follows a petition by Rajasthan Urja Vikas & IT Services Ltd (RUVITL), which manages power trading on behalf of the state’s DISCOMs.

Valid For 5 Years

The commission said the extended PPAs would be valid either for five years from the expiry date or up to 25 years from the projects’ commercial operation dates (COD), whichever is earlier, in line with the useful life of wind assets under the RE Tariff Regulations 2020.

The tariff for the extended period has been fixed at ₹2.44 per kilowatt-hour, based on the lowest price discovered through a SECI wind auction held in February 2018. Both developers consented to the extension at the agreed rate.

Persistent RPO Shortfall

RERC cited a persistent RPO shortfall as a key reason for the approval. The regulator also referenced similar precedents and noted that RUVITL’s board had cleared the extensions in November 2024.

However, the commission rejected a separate request from RUVITL seeking blanket approval for future PPA extensions through mutual consent, stating that regulatory procedures must continue to be followed.

The order directs the parties to enter into supplementary agreements to formalize the extension.